31 Jul Under Armour Shares Surge on Footwear Growth, Full-Year Guidance
Under Armour Inc. shares surged on Thursday after the sportswear maker reported strong second-quarter footwear sales and boosted its outlook for 2015.
Shares of Under Armour closed up more than 7 percent to an all-time high of $95.95.
The company on Thursday reported second-quarter profit of $15 million, or 7 cents per share — down from $18 million, or 8 cents per share, in the year-ago quarter. Under Armour (NYSE: UA) attributed the drop to its $650 million buy of MyFitnessPal and Endomondo in the first quarter. The company’s first quarter profit also saw a decrease primarily as a result of those acquisitions.
Despite the decrease, Under Armour still beat analysts’ estimates that the company would rake in 5 cents per share in the second quarter.
Under Armour saw quarterly revenue growth of almost a third and raised its revenue outlook for the year to $3.84 billion, reflecting growth of 23 percent over 2014. Under Armour’s second-quarter revenue increased 29 percent to $784 million, up from $610 million in the second quarter of 2014 — marking the 21st consecutive quarter of revenue growth of at least 20 percent.
Footwear revenue — a key focus for Under Armour as it seeks to eat away at rival Nike Inc.’s market share — increased 40 percent to $154 million, up from $110 million in the prior year’s period. Under Armour said the growth is tied to the expansion of its running shoe line and “ongoing excitement” around its signature sneaker for NBA MVP Stephen Curry.
Brad Dickerson, the company’s chief operating officer, added that sales were lifted by new base layer styles, training gear and expanded golf and hunting lines.
Under Armour’s apparel revenue increased 23 percent to $515 million from $420 million in last year’s second quarter. Accessory revenue grew to $83 million, up 39 percent from $60 million.